TOKYO (AFX-ASIA) - Finance Minister Masajuro Shiokawa said the government aims to weaken the yen against the dollar, but added that he will not bring up the issue of a weak yen policy at the G7 meeting in Washington late September.
"We are not considering discussing a weaker yen at the G7 meeting," Shiokawa told reporters at a regular briefing, but added: "We aim to make the yen weaker against the dollar. This is our projection, or expectation."
He was responding to a question on whether he will ask other G7 members at the Washington meeting to allow for a weaker yen. Shiokawa said the government will increase expenditure on schemes to help offset unemployment by an additional 57 bln yen in the current fiscal year in response to the record 5.0 pct unemployment rate announced this morning.
The unemployment rate in July rose to 5.0 pct, a record high, from 4.9 pct in June, the Ministry of Public Management, Home Affairs, Posts and Telecommunications said.
In July, the male unemployment rate increased to 5.2 pct, a record high, from 5.1 pct in June, while the female unemployment rate rose to 4.7 pct from 4.6 pct in June, it said.
"As Japanese manufacturers are continuing to shift output to overseas, we cannot replace the increasing numbers of jobs lost even if we provide measures to create employment," Shiokawa said.
"The government's Council of Economy and Fiscal Policy will begin discussing measures to soften the impact of the shift of production to overseas," he added.
Shiokawa did not specify what measures will be discussed but cited a UK scheme aimed at encouraging overseas affiliates based there to employ young workers.
Meanwhile, the government will issue new gold coins for the upcoming soccer World Cup to be held in Japan and Korea but will not import gold as a result.
"We have decided to mint 100,000 commemorative gold coins denominated at 10,000 yen each to celebrate the 2002 World Cup," Shiokawa said. "But we will not buy gold ore for that purpose from overseas."